Iron ore production and sales overview of Q3 2018 – Vale

23-Oct-2018

The iron ore production record of 104.9 Mt in 3 Q18 was 10.3% higher than in 3Q17, as a result of the S11D ramp-up. and 8.5% higher than in 2Q18 mainly due the usual weather-related seasonality and the performance of S11D. The sales mix has been consistently improving mainly as a result of S11D and Tubar3o I and II pellet plants ramp-ups. The share of premium products (pellets, Caraj£s, BRBF, pellet feed and sinter feed low alumina) increased to 79% in 3Q18, contributing to the USS 1.5/t increase of Vale s average premium to the realized iron ore fines CFR/FOB wmt price in 3Q18 vs. 2Q182. Vale continued the build-up of offshore inventories to increase the flexibility of the supply chain and product portfolio. Nevertheless, Vale achieved record sales for a quarter of 98.2 Mt, 8.7 Mt higher than in 3Q17, due to the solid production performance in 3Q18. In the coming quarters, the offshore inventories will increase in a lower rate than seen in previous quarters.

Northern System

The Northern System, which comprises Caraj£s and S11D, achieved a quarterly record of 53.9 Mt in 3Q18, 7.7 Mt and 8.9 Mt higher than in 2Q18 and 3Q17, respectively, mainly due to the successful S11D ramp-up and the usual weather-related seasonality when compared to the 2Q18.

Southeastern System

The Southeastern System, which encompasses the Itabira, Minas Centrais and Mariana mining hubs, produced 28.0 Mt in 3Q18,1.1 Mt and 0.4 Mt higher than in 2Q18 and 3Q17, respectively, due to the restart of the Timbopeba plant and the better operational performance of the Itabira complex and the Brucutu plant.

Southern System

The Southern System, which encompasses the Paraopeba. Vargem Grande and Minas Itabirito mining hubs, produced 22.4 Mt in 3Q18, in line with 2Q18 and 3Q17.

Midwestern System

The Midwestern System produced 0.6 Mt in 3Q18, in line with 2Q18 and 3Q17.

Source: STRATEGIC RESEARCH INSTITUTE, STEELGURU